Swot Analysis Of State Farm Insurance
State Farm insurance is a well-known insurance company that has been around for nearly a decade. Many insurances companies have a limited life and cannot adapt to the rapidly high demanded market within the financial service industry. For a company to last as long as State Farm and with as much success is the result of many strengths. State Farms services almost seem endless when it comes to what policy holders can insure. People enjoy having options when possible and that’s exactly what State Farm has to offer. State Farm offers one to insure just about any asset that a person may own including automobiles, homes, jewelry, etc. (State Farm, 2015).
Also, the target market is drivers under the age of 25 years by having the most …show more content…
The article Natural Disasters, Political Risk, and Insurance Market Development states “the incidences of natural disasters and deaths attributable to natural disasters contribute to insurance market development under the tenure of a government with lower levels of political risk” (Chang, Chun Ping; Berdiev, Aziz N, 2013). Natural disasters are uncontrollable and play a big role when insurance companies issue their policies. As a reminder, location of the potential policy holder plays a factor when a quote is developed. Worldwide economic losses have increased significantly from the 1950s of $53 billion to $370 billion in 2011 (Chang, Chun Ping; Berdiev, Aziz N). Losses of homes, automobiles, and people typically cause losses for insurance companies. If a natural disaster occurs, then thousands of claims will be summited with in a similar time frame can cause huge losses for insurance companies.
Strength vs Weakness
State Farm’s key strengths are its brand name and nationwide availability. These strengths allow it to be recognizable in any state in the U.S. which is a plus because it offers service in all 50 states with a positive track record of nearly a 100 years. With its weakness coming from a decrease in net income, however that is not uncommon for insurance companies because all losses hard to predict. Even though State Farm is not punched the global insurance boundaries, availability …show more content…
They have a solid history and all the tools and resources that they need to prepare for the future. As part of their step forward, Mary Crego states “they are developing exciting ways to connect with customers using new technology that will offer more choices for how we do business together; whether it 's over the phone, via a mobile device, online, in one of our thousands of agents ' offices, at a body shop or a home damaged by fire or wind (Crego, 2012). A successful company is a reflection the service that is provided; when a company internally focuses on satisfying their customer’s customer service experience, it tends to contribute to the overall success as far as financial reports are concerned.
In conclusion, a SWOT analysis is a great overall evaluation of a company from an internal perspective. It can address the strengths with the possibility to improve those strengths, weaknesses to identify what needs improvement, opportunities to address possible advancements in success, and threats to identify external factors that could impact the image and revenues of the company. The analysis of State Farm insurance introduces many internal factors that play a big role in everyday